Teck Resources Limited (Teck) announced an exchange of certain oil sands leases relating to Teck’s Frontier oil sands project.
Under the exchange, Teck transferred oil sands rights and other miscellaneous interests associated with Lease 14 to Shell Canada Energy (“Shell”) and Shell transferred to Teck the oil sands rights and other miscellaneous interests associated with Leases 309, 310, 351, 475, 476, 607, 608, 609 and the northeastern portion of Lease 352. The asset exchange significantly reduces the lease boundary interfaces between the Frontier project and Shell's Pierre River Mine project and is anticipated to benefit the economic recovery of oil sands for the parties' respective projects. The map included as Appendix A to this news release shows the locations of the exchanged leases. The leases Teck acquired in the exchange generally lie east of its Frontier project area and form a continuous series of leases with the Frontier leases. Although the resource estimate for the Frontier Project has not yet been updated, Teck expects that the asset exchange will have a net positive effect on project resources. In connection with the closing of the asset exchange, Teck and Shell have entered into a projects agreement with respect to their future activities on the Frontier and Pierre River projects, respectively.
The asset exchange and projects agreements are expected to resolve issues identified in Teck’s statement of objection regarding Shell’s Pierre River Mine regulatory application filed with the Alberta Energy Resources Conservation Board and Shell’s statement of concern regarding Teck’s Frontier project regulatory application filed with the regulators. Under the projects agreement, among other matters, each of Teck and Shell will work to minimize certain impacts of their respective projects on the other’s project and on the environment, while maximizing the economic recovery of oil sands along common boundaries and improving the respective projects' efficiency.
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